How to Open Trading and CDS Account for Trading in Bursa Malaysia?

A couple of my blog readers asking me on how to trade or invest in Bursa Malaysia? In order not to disappoint them, I will write a series of article for a beginner to start invest or trade in Bursa Malaysia.

I will also explain other information related to it such as the process of buying or selling shares itself.

In Malaysia, stocks or shares are listed in Bursa Malaysia Stock Exchange (Bursa) which formally known as Kuala Lumpur Stock Exchange (KLSE).

In order for you to invest or trade shares that are listed in Bursa Malaysia, you need to open Trading Account and CDS Account. Below are the steps for you to follow.

Step 1 – Open trading account

You have to open trading accounts with stock broker or participating organization that is registered with Bursa Malaysia. You can find the list of stock broker companies at Bursa Malaysia webpage. You are recommended to visit their office to open an account so that their representative can verify your documents.

Some stock brokers allow account opening via internet but you need to get your documents certified by Notary Public.

Step 2 – Choose between Nominee or Direct Trading Account

For Nominee trading account, basically you appoint your broker to hold shares on your behalf. It means that, once you buy shares, your name will not show on the registration book of existing shareholders directly, instead it will show your Broker Name.

The advantage is, you do not need to do any paperworks such as fill up forms for bonus issue, right entitlements and others. The most important is your broker have to remember the dateline for all the paperworks, not you. But you still need to instruct them on what to do.

However, the disadvantage of nominee account are you are not eligible to apply for IPO and you may not receive the annual report or some gift vouchers easily.

You may choose to open nominee account with one broker and direct account with another broker.

Step 3 – Choose between Cash Upfront or Collateralised Account

Some brokers have an option for you to choose between Cash Upfront or Collateralised Account. For Cash Upfront account, total trading limit of the day is equal to the amount of cash you have in your trust account. The advantage of Cash Upfront account is lower brokerage fee.

For Collateralised Account, you are allowed to trade beyond the amount of cash that you have in trust account. Normally, broker allows at least 2 times the amount cash that you have. On top of that, if you have shares in the attached CDS account, they also can be used as collateral to increase your trading limit.

Trust account is an account where your broker keep cash that you deposited. They may pay interest on the money keep in this account.

Step 4 – Decide to invest Online or Offline

To invest or trade in Bursa Malaysia you can have either do it via Offline or Online but now, most of the brokers in Malaysia provide online trading platform.

For Offline Trading account, you will have a real people called remiser who will handle all your orders. You will have to contact your remiser through what ever means for buy or sell shares.

For Online Trading Account, all of your orders are made through internet application which nomally load through internet browser of your computer. Some stock broker also allow to do transaction via PDA phone or mobile phone.

The main advantage of Online trading Account over Offline Trading account is lower brokerage fee. For online trading account, you may call helpdesk for trading but they may impose high brokerage fee.

You can look at the list of stock broker companies that offering online trading here.

Step 5 – Open Central Depository System (CDS) account

Next, you have to open CDS account. Your chosen Stock Broker will assist you to open CDS account.

CDS account is an electronic account which maintain by Bursa Depository or formerly known as Malaysian Central Depository.

CDS account is used to keep track or your shares or stocks movement. Shares will be credited to your account when you buy and debited from your account when you sell on due date.

You need to fill and sign in CDS Opening Account Form (FMN01). At the same time you have to sign two copies of specimen cards and provide copies of your identity card (NRIC). The fee for CDS account openning is RM10.

If you have multiple trading account, you have to open separate CDS account for each trading account. Sharing CDS account is not allowed.

Hi this is helping. thx a lot. but I do have some questions. How if I am just a university student and I wish to trade? First I knew that I have to open a CDS account right? If I wish to trade under osk company can I open the CDS account through the maybank and then apply for a trading account through the osk company? Besides they also require for some documents which students don’t have so do I still have the chance to get the account to trade online?

I’m using PBE Broker…is nominees…
Cannot APPLY IPO…
So can I just apply direct share trading accound which is Jupiter or TA…then use their CDS number to apply in pbe broker ? hope can help ! Thanks !!
URGENT~

You have to open direct trading account with any broker. When apply for IPO, you have to use the Direct CDS no. If you get the IPO, the shares will be credited to your new Direct CDS account with new broker.

Ok ! Thanks you very much !!
I will change to public investment bank soon…
By the way… Once I register already…
Then can I open another direct trading share which is Jupiter or TA…then use their CDS number and key in to my public invstment bank to apply IPO ??
Coz those Jupiter broker fees is cheaper !!
Thanks !
Wait your reply !! 😀

You can open another trading account with your preferred broker for example Jupiter. Each trading account will have separate CDS account number. You have to use your new Jupiter Direct CDS account number when applying for IPO. The shares will be credited to your new Jupiter account and not Public Investment bank.

Ok ! Thanks you very much !!
Last question ~ I just register Hwangdbs CDS account ~~
Next step .. I will going to open maybank2u account ~
After that..use the Hwangdbs cds to apply ipo thru maybank2u ?
Should I open Saving account / Share trading account in Maybank2u coz of applying IPO ?? And… Need to open Maybank Cds number ?(Got two CDS which is Maybank and HwangDbs )How? ?_?

Student is not eligible to open a trading account & CDS account??
I’ve checked on the Bursa Malaysia website for the broker participants, I’d like to open both trading account & CDS account with Maybank, but is it any Maybank outlet can do it, or I must go to the outlet address that stated in Bursa Malaysia?

Ok ! Can I check the CDS number is under my name or not ??
because I never see the remiser before…just my friend introduce in phone… and he tell me my cds number in phone too… If I call him and sold my shares… Then he will send the money to my maybank account ?
Hope can help ! 🙁

I received the letter from Bursa Malaysia ~ And It Is Hwangdbs Cds number…So now I’m just open Maybank and type Hwangdbs Cds number to apply IPO ? That’s all ??
Because last time I’m register Hwangdbs CDS ,I was sent Fotocopy Public Bank Front Page And NOT Maybank to register…

hi i would like to know, what is the minimum capital and the max capital to make this trade? i want to have it,but seems i don’t know how.. hope you can help me. thank you for your note on this trading. now i know the step, just the amount of capital that not show up. =)

siti, I’m not sure the minimum but I believe as long as you have money in the account, you can start trading based on your available capital. I don’t think there is maximum, stock market will always be bigger that the money that individual can accumulate.

Already sent 2 emails to CIMB and interpacific to ask regarding the information to open trading account with them, but no one reply. Is it because i am just a engineer (salary abt 8k), not the rich businessman, so they lazy to entertain me???

Hi, I do not know that eIPO must be applied using own bank account (which match to the CDS account), I have done one application where the two accounts are from different owners. Will it be rejected and refunded?

In that case, if I still interested to apply for the IPO, am I able to apply another eIPO using the same CDS account with another bank account (but now the two accounts are from same owner)?

1. If I open a CDS and trading acc with Maybank, is it possible to buy shares in other companies let’s say Nestle?
2. Would they use my savings in Maybank account if something goes wrong in my trading?
3. To buy shares, I have to pay once right?
4. How much money should I have to buy shares?

Hi, great info. I have 2 questions.
1. If I already have a CDS account with a trading account with broker A, can I just open another trading account with broker B and associate that with the existing CDS account?
2. Does all brokers offer both direct and nominee trading account?
Thank you very much.

a) If I have a direct CDS account with CIMB, and I applied IPO through other remisier using that CDS account, the shares will go into my CIMB trading account? Since the IPO only input the CDS account number, how can I choose which trading account they should allocate my shares to?

Hi Million,
I am a Non-Malaysian Expatriate. Just wanted to know that is it possible to apply CDS and Trading account for Non-Malaysians ? Just for your info, my company had applied for me to have MayBank and PublicBank Saving Account. I am using both bank account currently. Your response would be highly appreciated.

Check out the recent article suggested above which I co-wrote.
It outlined how you can invests overseas in multiple markets.
RM150 fee for RM5k shares is considered expensive, the article outlined that it is much cheaper using CIMB. CIMB specified the fees to be around HK200 or so, which is quite reasonable (divide by ~2.5 to convert).